What’s With The Thousand And One Mortgage Application Questions?
My spouse and I finally made a decision to make the “big move” (no pun intended!) and buy a little home that we can call our own. So, without having any prior experience of how a home loan works and what is needed, we set out to swiftly complete this effortless process. Man, oh man, were we brought back to reality in a jiffy!?
Acquiring a home loan is not something you can quickly finalize while having a cup of java! It is quite a long, involved procedure and can be very overwhelming if you don’t know what to expect. Let’s have a look at the zillion and one steps (well, almost!) to secure a home loan:
(It’s actually quite ironic that it takes “lucky 13” steps to secure a home loan, don’t you think?)
Step 1: Find the house you wish to buy. Don’t chuckle – this is not as obvious as it sounds. Lots of people would like to get a basic idea of how much they’ll be able to borrow, before starting the big house hunt. Most home loan companies will however require an offer to purchase or similar document to get the process started.
Step 2: Choose a lender. There are many different lender companies available. Chat to friends and family and get recommendations on which companies might be your best option.
Step 3: Complete a loan application. This is purely straight forward – just make sure you have all your personal information at hand.
Step 4: Have an idea of costing. Ensure that you have a clear knowledge of all the expenses that will be associated with the process – this includes attorney’s fees and transfer fees.
Step 5: Compare costs. Not all home loan organizations will offer you an equally great deal.
Step 6: Negotiate costs. If you are not entirely content with the deal on offer, see if you can negotiate a better offer. Beg, grovel or threaten if neccessary (just kidding!).
Step 7: Commit to a particular lender and interest rate. Now you are ready for action!
Step 8: Supply the necessary information. Make sure that you have all the necessary information – proof of income, proof of expenditure, marriage certificates and all other paperwork.
Step 9: Pay any up-front fees. This might be in the form of credit reports or processing fees.
Step 10: Review the loan agreement. Make certain that the borrowed funds matches the initial quotation you obtained and that all information, terms and conditions are in order.
Step 11: Sign on the dotted line. No description needed here.
Step 12: Make another payment. This is usually by means of a down-payment and will not always be applicable.
Step 13: Hurry up and wait. The waiting period depends from home loan company to home loan company. Get the champagne on ice at the same time, so that you are ready to celebrate when you get the good news!
Finding and buying the home of your dreams should not be a nerve-racking process – keep the above steps in mind and you will be okay!
For more information about a home loan visit the website http://www.isureins.co.za
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